Urgent Moves for a Weakening Property Market: What the Industry Wants from the Government

The Market Context

Thailand’s property market is navigating slower household spending, high debt ratios, and cautious bank lending. Developers and industry associations argue that targeted policy support could stabilize demand, ease transaction bottlenecks, and restore confidence—especially for first-time buyers and practical end-users.

What the Industry Is Asking For

1) Calibrated Loan Flexibility

• Fine-tune LTV rules for first homes and genuine end-users.
• Encourage longer tenors and step-up repayments to lower monthly burdens early on.

2) Targeted Buyer Incentives

• Temporary transfer fee and mortgage fee reductions for affordable price bands.
• Tax deductions or cash-back programs tied to first-home purchases and energy-efficient upgrades.

3) Supply-Side Relief

• Fast-track permits for transit-oriented and affordable projects.
• Property tax clarity and temporary relief on inventory to reduce forced discounting.

4) Encourage Product Fit

• Promote mid-market, functional layouts instead of oversized premium stock.
• Support senior-friendly and multi-gen housing as demographics shift.

5) Transparency & Data

• Provide timely market data on approvals, absorption, and lending—helps banks, buyers, and developers make better decisions.

Why These Moves Could Work

• Affordability → absorption. Lower initial costs and clearer monthly payments invite sidelined buyers back.
• Confidence begets activity. When policy signals are clear, banks approve faster, developers launch with conviction, and buyers act.
• Better product mix. Incentives tied to practical homes encourage supply that people actually want—and can maintain.

What Buyers Should Watch

• Window of incentives: If fee cuts/tax perks arrive, buyers in the next 3–6 months could benefit most.
• Bank approvals: Loan clarity improves when policies and appraisals align.
• Project quality: Even with incentives, prioritize location, management, and build quality.

What Sellers & Developers Can Do Now

• Package closing-cost support and mortgage-ready offers with bank partners.
• Pivot to right-sized units and cost-savvy specs that keep monthly payments stable.
• Communicate operating costs (CAM/maintenance) transparently; buyers value predictability.

FAQs

Q: Will policy changes lift prices?

A: The goal is to unlock demand and normalize transactions. Well-located projects may firm up, while oversupplied pockets remain competitive.

Q: Is the market only for end-users now?

A: End-users lead the recovery, but well-priced, rent-ready units in transit zones still attract investors.

Q: Should I wait for more stimulus?

A: If your financing is ready and the unit fits your needs, don’t over-time the market. Incentive windows can be brief.

Considering a purchase while incentives are on the table?

Contact to The Realtors’ advisory team.